GST effect : Apple Slashes Prices, iPhone 7 Plus now cheaper

Tech giant Apple has slashed prices of products, including iPhone, iPad and Mac, India from July 1, as it looks to pass on the benefits accrued from the recently rolled out GST to customers. The iPhone 7 Plus (256GB version) — the most premium device in Apple’s smartphone portfolio — will be available at Rs 85,400. This is Rs 6,600 cheaper than the earlier price tag of Rs 92,000. Similarly, price of iPhone SE (128GB) has been reduced by Rs 2,200 to Rs 35,000.

According to PTI news report, The new prices listed on the company’s website is up to 7.2 per cent lower than previous iPhone prices. The 12.9-inch iPad Pro (512GB) will see its price coming down from over Rs one lakh to Rs 97,000. Apple declined to comment on whether the price reduction was on account of GST, which will see smartphones being taxed at 12 per cent as compared to an earlier range of 8-18 per cent depending on the states.

Interestingly, the government has also introduced a 10 per cent basic customs duty on mobile phones and certain parts, in a bid to promote domestic manufacturing. However, domestic players like Micromax and Lava are unlikely to revise their prices after GST implementation.

India is an important market for Apple and this move could help the US-based firm further consolidate its position here. According to industry estimates, Apple has a 44 per cent share of the premium market ($400 and above), while rival Samsung had 41 per cent share in the January-March 2017 quarter. Other players in the category include the likes of OnePlus, LG, Sony and HTC.

Apple’s revenue grew more than 20 per cent in India in the quarter ended March 2017. Acknowledging that Apple is “underpenetrated” in India, CEO Tim Cook has said the US tech giant is strengthening its local presence in the country and is optimistic about its future given the fast-growing economy and improving 4G network infrastructure in the country.